Zuari Agro Chemicals Ltd. · NSE:ZUARI
Zuari Agro Chemicals — Investor Presentation (April 2015)
31 slides from Zuari Agro Chemicals's investor presentation, April 2015
Slide 1: Zuari Agro Chemicals Ltd. April 2015
@ adventz ZUARI AGRO CHEMICALS LTD. April 2015
Slide 2: Disclaimer
DISCLAIMER This presentation is prepared by Zuari Agro Chemicals Limited (ZACL or the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part
Slide 3: Table of Contents
TABLE OF CONTENTS Sr.no Particulars Page No. 1 Executive Summary 4 2 Industry Overview 6 3 Zuari Agro Chemicals: Company Overview 14 4 Zuari Agro Chemicals: Investment Highlights 27 Zuari Agro Chemicals Limited 3
Slide 4: Executive Summary
Executive Summary Promoted by Late Dr. KK Birla, Zuari Agro Chemicals Limited (ZACL) is an agriculture conglomerate that manufactures and sells fertilisers, seeds, pesticides, micro nutrients, specialty fertilisers and organic manure and operates a fertiliser manufacturing facility with an install
Slide 5: Table of Contents
Table of Contents Sr.no Particulars Page No. 1 Executive Summary 4 2 Industry Overview 6 3 Zuari Agro Chemicals: Company Overview 14 4 Zuari Agro Chemicals: Investment Highlights 27 Zuari Agro Chemicals Limited 5
Slide 6: Global Agriculture Industry Overview
Global Agriculture Industry Overview Bio fuels are reducing the availability of some food staples for human consumption. Increase in food consumption – Global Sustained population is increasing Eg. proportion of corn getting used for and growing The world food consumption is expected to prod
Slide 7: Indian Agriculture Overview
Indian Agriculture Overview Brief Synopsis Forecasted Foodgrain Production and Foodgrain Availability (mn tonnes) India has 18% of the world’s population but only 11% of its arable land; Per capita renewable water resources are well below global average 300 263 266 268 271 273 275 249 252 255 258
Slide 8: Indian Fertiliser Industry Overview
Indian Fertiliser Industry Overview Fertilisers Description and Indian Fertiliser Current Scenario Nutrient consumption over the last decade Mineral fertilisers (Nutrients) are used to provide optimum nutrient balance 30 tailored to the demands of specific crop, soil and climate conditions, maximi
Slide 9: Indian Seeds and Agro-Chemicals Industry Overview
Indian Seeds and Agro-Chemicals Industry Overview Indian Seed Industry Indian Agro Chemicals Industry Brief Synopsis Brief Synopsis Indian crop protection industry is estimated to be US$4.25bn in Current size of the Indian Seed Industry is c.US$2bn of which field crop FY14 and is expected to gro
Slide 10: Existing Policy Framework for Fertilisers
Existing Policy Framework for Fertilisers Extant Government policies governing fertiliser industry in India for existing capacities The production, imports, distribution and pricing of urea is closely controlled by the Government of India Urea is subsidized in India in order to make it affordabl
Slide 11: Indicative Timeline for Subsidy Acknowledgement
Indicative Timeline for Subsidy Acknowledgement 1 2 3 4 5 6 Acknowledgment in Production Dispatch to Rail Dispatch from Rail to Receipt of Goods in Sales mFMS by Wholesaler and (01/Jan/15) Heads (03/Jan/15) District (03/Jan/15) District (04/Jan/15) (06/Jan/15) Retailers (06/Jun/15) Within 3 days Wit
Slide 12: New Urea Investment Policy – 2012 (Amended in October 2014)
New Urea Investment Policy – 2012 (Amended in October 2014) New Urea Investment policy governing Urea producers in India for new capacities and revamps Product Pricing linked to Import Parity Price(IPP) of Urea Parameter Old Policy – 2008 New Policy – 2012 Fixed Floor – Cap Price • Floating Floo
Slide 13: Table of Contents
Table of Contents Sr.no Particulars Page No. 1 Executive Summary 4 2 Industry Overview 6 3 Zuari Agro Chemicals: Company Overview 14 4 Zuari Agro Chemicals: Investment Highlights 27 Zuari Agro Chemicals Limited 13
Slide 14: Zuari Agro Chemicals: Company Overview
Zuari Agro Chemicals: Company Overview Business Description Key Financials Zuari Agro Chemicals Limited (“ZACL” or the “Company”) is a part of YE Mar, (INR mn) 2012 2013 2014 the Adventz Group which has presence in businesses across four major verticals Agribusiness, Engineering and Infrastructure
Slide 15: ZACL's Current Corporate Structure
ZACL’S Current Corporate Structure As of Dec-2014 Others Zuari Agro Chemicals 9.2% DIIs Limited Promoters 14.7% Stake FIIs 73.4% 2.8% OCP Group Agro Chemicals and Zuari Agri Sciences 100% 50% Zuari Maroc Phosphates 50% Seeds Business Limited Limited Integrated phosphatic fertiliser plant having capa
Slide 16: Evolution Timeline
Evolution Timeline Acquired Commissioning Set-up Style SPA JV with Indian Acquired Simon stake in of the urea Furniture Ltd Oil Tanking India Limited phosphate plant at Goa mine in Peru 1967 1973 1994 1995 1998 2000 2002 2003 2007 2011 2012 2014 Acquired Promoted Promoted Commencement of Set up Zuar
Slide 17: Financial and Operational Track Record
Financial and Operational Track Record Turnover (INR mn) EBITDA (INR mn) and Margin (%) PAT (INR mn) and Margin (%) 90,000 2,000 2.5% 5,000 4,489 5.6% 1,806 4,366 83,254 2.2% 5.4% 1,500 2.0% 79,906 4,000 3,478 5.4% 5.5% 5.2% 80,000 1.5% 1,000 744 74,208 3,000 5.0% 0.9% 1.0% 4.8% 500 2,000 0.5% 70,00
Slide 18: Fertiliser Segment Overview
Fertiliser Segment Overview Urea Installed Capacity Market share in DAP/Complex Fertilizers (2013-14) Installed Capacity % Utilisation Others Zuari Group 15% 14% 5,000 128% 4,588 140% Chambal 115% 4% 102% 103% 101% 120% 4,000 100% MCFL 3,000 63% 80% 60% 2% 1,952 IPL 2,000 1,641 60% 20% 937 795 40% 1
Slide 19: Jai Kissan Junction
Jai Kissan Junction Positioning Business Model ‒ Key value proposition: convenience, reliability ‒ Located at high potential and experience area or Taluka palace ‒ Assurance of right quality/ ‒ Typical showroom space of quantity 500-750 sq.ft. ‒ High level of service and ‒ Audio-visual and internet
Slide 20: Future Growth Strategy
Future Growth Strategy 1 2 Increase Increase the Market share of share non-subsidy based businesses Reduced share of import based trading 3 Zuari Agro Chemicals Limited 20
Slide 21: Paradeep Phosphates Limited (PPL)
Paradeep Phosphates Limited (PPL) PPL Overview Paradeep Phosphates Limited (PPL) was incorporated in 1981. It was acquired jointly by ZACL and Zuari Agro OCP S.A. Govt. of OCP S.A. Morocco in 2002 pursuant to divestment by Govt. of India Chemicals Morocco India 50% 50% PPL manufactures and marke
Slide 22: Mangalore Chemicals and Fertilisers Limited (MCFL)
Mangalore Chemicals and Fertilisers Limited (MCFL) Business Description Key Financials Incorporated in 1971, Mangalore Chemicals and Fertilizers Limited 6M ended YE Mar, INR mn 2012 2013 2014 (“MCFL”) is engaged in the manufacture and sale of urea, di- Sep-14 ammonium phosphate and complex fertili
Slide 23: Table of Contents
Table of Contents Sr.no Particulars Page No. 1 Executive Summary 4 2 Industry Overview 6 3 Zuari Agro Chemicals: Company Overview 14 4 Zuari Agro Chemicals: Investment Highlights 27 Zuari Agro Chemicals Limited 23
Slide 24: Zuari Agro Chemicals – Key Highlights
Zuari Agro Chemicals – Key Highlights Integrated manufacturing facilities and long term tie-ups for raw material 1 sourcing 2 Diverse product portfolio which caters to varied needs of the farmers Zuari Agro Chemicals 3 Well-maintained relationships with farmers 4 Extensive marketing and distribution
Slide 25: Integrated Manufacturing Facilities and Strategic tie-up for critical Raw Materials
Integrated Manufacturing Facilities and Strategic tie-up for critical Raw Materials Integrated Diverse product Well-maintained Extensive marketing and Professional and Highly Manufacturing Facilities portfolio which caters to relationships with distribution network in Experienced Leadership and long
Slide 26: Integrated Manufacturing Facilities
Integrated Manufacturing Facilities Integrated Diverse product Well-maintained Extensive marketing and Professional and Highly Manufacturing Facilities portfolio which caters to relationships with distribution network in Experienced Leadership and long term tie-up for varied needs of the farmers Ind
Slide 27: Diverse Product Portfolio that Caters to Varied Needs of the Farmers
Diverse Product Portfolio that Caters to Varied Needs of the Farmers Integrated Diverse product Well-maintained Extensive marketing and Professional and Highly Manufacturing Facilities portfolio which caters to relationships with distribution network in Experienced Leadership and long term tie-up fo
Slide 28: Deep and Well-maintained Relationships with Farmers
Deep and Well-maintained Relationships with Farmers Integrated Diverse product Well-maintained Extensive marketing and Professional and Highly Manufacturing Facilities portfolio which caters to relationships with distribution network in Experienced Leadership and long term tie-up for varied needs of
Slide 29: Extensive Marketing and Distribution Network In India
Extensive Marketing and Distribution Network In India Integrated Diverse product Well-maintained Extensive marketing and Professional and Highly Manufacturing Facilities portfolio which caters to relationships with distribution network in Experienced Leadership and long term tie-up for varied needs
Slide 30: Strong Parentage Combined with Highly Experienced Leadership Team
Strong Parentage Combined with Highly Experienced Leadership Team Integrated Diverse product Well-maintained Extensive marketing and Professional and Highly Manufacturing Facilities portfolio which caters to relationships with distribution network in Experienced Leadership and long term tie-up for v
Slide 31: Thank You
THANK YOU 31
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